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Should South Africa have R10 coins?

28 September 2021 10:43 AM
Tags:
South African Reserve Bank
Sarb
sa mint
Lester Kiewit
The Morning Review
Pradeep Maharaj
R10 coin

Lester Kiewit interviews Pradeep Maharaj of the South African Reserve Bank.
  • The decision to mint new value coins lies with the South African Reserve Bank

  • About 60% of South Africans transact mostly using cash

  • It would be economical to mint a R10 coin, but most users do not want it

  • Most South Africans want the 10 cent and 20 cent coins scrapped


R5 coins. © paperstreetdesign/123rf.com

The last coin introduced into South African currency was the R5 coin back in 1995, and before that, the R2 coin in 1989.

As inflation relentlessly chips away at our coins’ buying power, perhaps the time has come to strike a new R10 coin for circulation?

The SA Mint did actually create 500 R10 coins in 2015.

The limited-edition collectors’ pieces celebrated UNESCO Man and the rich diversity of the Kogelberg Biosphere Reserve.

These coins were minted in gold; you can’t use them to transact.

Lester Kiewit interviewed Pradeep Maharaj, Chief Operating Officer of the Executive Management Department at the South African Reserve Bank (scroll up to listen).

The decision does lie with the Reserve Bank…

Pradeep Maharaj, Chief Operating Officer - Executive Management Department, South African Reserve Bank

If the face value of a note is far lower than the cost of producing it, you have what is called seigniorage… That’s one of the factors that should be considered when deciding to move from a note to a coin…

Pradeep Maharaj, Chief Operating Officer - Executive Management Department, South African Reserve Bank

More than 60% of the population rely predominantly on cash to transact…

Pradeep Maharaj, Chief Operating Officer - Executive Management Department, South African Reserve Bank

The bank has done the research. We spoke to the informal sector… and the formal sector… and the banking sector… Research has shown that there is an economic case to be made for a R10 coin, but there is no appetite from users…

Pradeep Maharaj, Chief Operating Officer - Executive Management Department, South African Reserve Bank

The same study has shown that, apart from the formal retail sector, no one else supports the idea of 10 cent and 20 cent coins… In 2012, we stopped producing the 5 cent coins… There are still loads out there…

Pradeep Maharaj, Chief Operating Officer - Executive Management Department, South African Reserve Bank

… by volume in circulation. By far it’s the R100 note…

Pradeep Maharaj, Chief Operating Officer - Executive Management Department, South African Reserve Bank



28 September 2021 10:43 AM
Tags:
South African Reserve Bank
Sarb
sa mint
Lester Kiewit
The Morning Review
Pradeep Maharaj
R10 coin

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